HONG KONG, January 13, 2022 –
Forbon Technology (“Forbon”), a Shenzhen-listed company engaged in the research, development, production and distribution of fertilizer additives as well as innovative technologies in digital agriculture, announced that it is intended to acquire 70% of Xiangyu Biotechnology (“Xiangyu”). Sino HK Capital Ltd acted as the M&A financial advisor and a PRC licensed securities firm was appointed to advise on listing compliance and to issue independent financial advisory reports to Forbon in this transaction.
Established in 2007 and headquartered in Yingcheng, Hubei Province, Forbon is an established global market leader in fertilizer additives. As the largest producer and distributor of fertilizer additives in China, Forbon offers comprehensive technical solutions and services in fertilizer additives to major clients both in China and internationally. Forbon’s key fertilizer additives product offerings include anti-caking agents, multi-purpose package agents, granulation improver, phosphate rock flotation agents, sustained release materials and other fertilizer additives. Forbon is also a global leader in digital agriculture, with a strong focus on smart and sustainable agricultural solutions. The company was listed on the Shenzhen Stock Exchange’s Growth Enterprise Market in 2014.
Xiangyu Biotechnology is a privately-held niche agricultural company specializing in the development and production of colorants, organic fertilizers and microbial fertilizers, as well as the national standard formulation unit of caramel color in China. It is one of China’s few large-scale caramel color manufacturers. Xiangyu’s leading products include various types of liquid caramel color and solid powder caramel color, widely used in the trait improvement of food, medicine, fertilizer and other related products. Xiangyu is a major upstream industrial partner for Forbon and supplies Forbon with a major raw material.
Forbon’s acquisition of the majority stake in Xiangyu is expected to generate strong synergies between the two companies in the areas of research and development, product innovation, client resources, and sales channels. Xiangyu is advantageously positioned to assist Forbon in the development of customized fertilizers that combine bio-stimulants, medium and trace elements with conventional fertilizers. The transaction shall also give Forbon an edge in several critical areas in biofertilizers including microorganisms, seaweed extracts and the combination of specialty fertilizers.
About Sino Capital
Founded in 2006, Sino Capital is an Asian investment banking firm focused on middle market cross border transactions including M&A advisory, private placement, debt arrangement, and corporate restructuring. Over the years, its leadership team has completed over US$2 billion in M&A and capital raising transactions in the industrial, healthcare and consumer sectors across the Asia Pacific, Europe and North America. Sino Capital is headquartered in Hong Kong with an office in Lausanne, Switzerland.